John F. Ehlers introuced Correlation Cycle indicator in Jun, 2020.
Function
In his article “Correlation As A Cycle Indicator” in Jun, 2020, John Ehlers introduces a companion to the trend indicator he presented in his article. This new indicator is designed to help traders navigate cycling markets. The new cycle indicator can help the trader get into trades earlier and have better insight into prevailing market conditions. While his correlation trend indicator measures the price correlation with a rising slope, the new correlation cycle indicator (CCY) measures the correlation with a sine wave.The new system trades only when the market state is 1 or -1, indicating trend regime. It goes out of the market when the market state is 0.
Key Signal
State --> +1 for long and -1 for short
Pros and Cons
100% John F. Ehlers definition translation, even variable names are the same. This help readers who would like to use pine to read his book.
Remarks
The 96th script for Blackcat1402 John F. Ehlers Week publication.
Readme
In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.
The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.
Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.
Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.
Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.
Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.
Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.
Hello Sir,the option 'Period' is the most important period for filling in the time series?
ashok1961
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@blackcat1402 Thank you very much for your excellent L2 Ehler's Correlation Cycle indicator. I would greatly appreciate it if you code Jay A. Leavitt's indicators that appeared in 6 issues of TASC. Their TS EasyLanguage codes for translation are as follows. Function: LeavittProjection // TASC JAN 2020 // Author Jay Leavitt // function LeavittProjection inputs: Price(numericseries), Length(numericsimple) ; LeavittProjection = LinearRegValue(Price, Length, -1) ; Function: LeavittConv // TASC JAN 2020 // Author Jay Leavitt // function LeavittConv inputs: Price(numericseries), Length(numericsimple) ; vars: LenConv(0) ; LenConv = IntPortion( SquareRoot(Length)) ; LeavittConv = LinearRegValue(Leavit tProjection(Price, Length), LenConv, -1); Function: LeavittConvSlope
// TASC JAN 2020 // Author Jay Leavitt // function LeavittConvSlope
Indicator: LeavittConvSlope // TASC JAN 2020 // Author Jay Leavitt // indicator LeavittConvSlope // show plot1 as histogram
Thank you for your various useful indicators